US President Donald Trump has announced a 25% tariff on Indian goods. Along with this, he has also said that some additional fine will be imposed on purchasing oil from Russia. But there is a good news for India on the economic front. India is currently the fastest growing economy in the world. The IMF says that India’s economy will grow at a rate of 6.4 percent in the next two years. On the other hand, the world’s third largest and Europe’s largest economy is recession in Germany’s economy. That is, India may soon become the third largest economy in the world after America and China.
According to data released on Wednesday, Germany’s economy has declined by 0.1% in the second quarter. American importers shopped fiercely in the first quarter due to the possibility of increasing tariffs. This increased the German economy by 0.3%. But due to strong purchasing for several months, demand has declined in America. Its impact has also been seen on the economy of Germany. Investments in the country have decreased in the second quarter of the second consecutive quarter, while consumption and government spending have increased.
German economy
America is the largest trading partner in Germany. Last year, there was a $ 278 billion trade between the two countries. The US has imposed a 15% tariff on the European Union. But experts say that this tariff is likely to affect Germany the most. For this reason, the economy of Germany will continue to fight this year. Its economy is expected to fast due to fiscal incentive next year.
According to Forbes, the US is currently the world’s largest economy with $ 30.51 trillion. China ($ 19.23 trillion) is second and Germany (4.74 trillion dollars) ranked third. India is the fourth largest economy in the world with $ 4.19 trillion dollars. The International Monetary Fund (IMF) has recently increased the estimate of India’s economic growth rate. It states that India’s economy will grow at the rate of 2025 and 2026 at 6.4%. China’s economy is estimated to grow at the rate of 4.8% in 2025 and 4.2% in 2026. The US economy will grow at a rate of 1.9% in 2025 and 2.0% in 2026.
